This paper aims to examine how tax noncompliance may affect capital accumulation and economic growth in Indonesia within the framework of endogenous growth theory. It is found that the economic effect of tax noncompliance may depend more on how the available capital is utilized, rather than its impact on capital accumulation per se. Empirical results also show that private investment has higher productivity than public investment. Further, it seems that the role of private investment in the growth process is much larger and more important than public investment and these results are robust across several specifications. The central thesis of this paper is that expansionary fiscal policies may need to carefully consider the productivity constraints that might be faced by public sector investments.

This research was conducted in the first semester of 2018 aimed at determining whether there is a causal and respond relationship between government spending and GDP using data from 2005 to 2017. The method used is Granger Causality and Vector Autoregression. The results of the study state that employee spending, goods expenditure, economic and tourism functions and culture influence reciprocal GDP, while capital expenditure, social assistance, education, and health functions only influence GDP. Employee spending shocks, social assistance, health functions have no significant effect and are responded to by GDP, while shocks to goods, capital, economic, education, tourism, and cultural spending are very influential and are responded to by GDP. The implication for the government is in compiling the next fiscal measures and policies in allocating expenditure in the APBN to increase the role of government spending to be able to increase gross domestic product and the national economy. For the general public, as the mandate of the State Budget, it can better know the direction and impact of the State Budget on the economy.

This research studies the technical efficiency of Tax Offices (KPP) in Indonesia by applying stochastic frontier analysis model. The observation was in the form of data aggregation at the level of the province to all Tax Offices in Indonesia, besides those within the scopes of the Large Taxpayer Regional Office and Jakarta Special Regional Offices for approximately seven years (from 2010 to 2016). Results of the analysis show different rates of technical efficiency in inter-provinces taxation. Analysis of the efficiency determinants reveals a number of internal factors contributing to the technical efficiency of taxation, as the audit effort and external factors, such as community education level. Increase on these two can improve the efficiency and productivity of tax offices.

The use of plastic bags in Indonesia growing more rapidly because of its characters that practical and steady. Ministry of Environment and Forestry stated the consumption of plastic bags produced by 90 thousand modern retail outlets in 2016 reaches 9,85 billion. The high rate consumption of plastic bags made Indonesia as the second biggest country produced plastic rubbish after China. As a result, it brings about uncontrollable environmental pollution that harmful to health. This research study the effects of excise in the economy. The establishment of excise on plastic bags causes the plastic bag prices more increasing. Each 1% increase in plastic bag price decrease the demand in the amount of 0,957% and the 20% excise tariff potentially increase excise revenue to IDR1.603.268,19 million. Therefore, the establishment of excise on plastic bags is the right way that must be applied by the government to reduce the high consumption of plastic bags in Indonesia. This research uses a descriptive method by studying the result of scientific analysis of data obtained from documentary and interview result.

In order to address the task and function in tax policy through the information technology, the Directorate General of Tax, Ministry of Finance of Indonesia, has already developed and launched e-Filing system as tax services in web-based. Although it has massively run, there are still problems in its implementation. Hence, we need to evaluate and judge how its implementation based on point of view of its user. The general purpose of this research is to evaluate the success of e-Filing system implementation based on user perception with DeLone & McLean Information System Success Model Approach (1992). By using primary data from the questionnaire and secondary data with a quantitative approach of Structural Equation Modelling (SEM) based on Partial Least Square (PLS)’s component or variance, this research examines the effect of success indicators measurement on the implementation of e-Filing system based on Delone & McLean (1992) model. This model uses six variables which are system quality, information quality, user satisfaction, use, individual impact, and organizational impact. This research empirically showed that the e-Filing system currently implemented is not successfully running yet based on all DeLone & McLean’s success measurement criteria. Hence, Directorate General of Tax needs to improve, strengthen, and expand the e-Filing system implementation.

This study aims to analyze the achievement of policy objectives in terms of effectiveness, efficiency, adequacy, neutrality, responsiveness, and accuracy of income tax incentives in the form of tax allowances for Indonesia’s shipyard industry. This study also evaluates the achievement of the policy using two tax principles, namely simplicity, and certainty. This research was conducted with a qualitative approach and qualitative data collection techniques through literature and field study. The results showed that although the tax allowance facility procedure has met the principle of neutrality, the facility had not effectively attracted investments because there is no shipyard industry using the facility. Perceived time cost and psychological burden still incurred by the taxpayers that made this policy inefficient. In addition, this facility did not meet adequacy, responsiveness, simplicity, and certainty criteria. This facility was also not appropriate for the shipyard industry because the tax allowance could only be utilized by large-scale industries, while small and medium-scale industries could not utilize the tax allowance facility.